Assessing the Alcohol and Drug Rehab Franchise Model

The Pitfalls and Promise of Scaling Addiction Treatment Brands

Investing in a substance abuse treatment center can be a rewarding experience financially and spiritually. A rehab center offers owners the unique opportunity to expand their portfolios while simultaneously making a positive impact on the community at large.

With the industry expected to generate an estimated $53 billion by 2025, addiction treatment center owners are poised for prime opportunities to expand and scale their current interests, while prospective investors couldn’t hope for a better opportunity.

But what are the best ways to deploy the alcohol and drug rehab franchise model?

In the following article, we cover the ins and outs of the addiction treatment center franchise model, and why now could be the perfect time to start scaling.

Franchising and Your Addiction Treatment Center: Building a Brand

So, what exactly is franchising and what does it entail? A franchise is a business model that incorporates a brand owner, or a franchisor, granting opportunities to franchisees in a mutually beneficial business arrangement.

The franchisor already has a well-established brand and has steadily proven its business model to be profitable. By selling the rights to use the addiction treatment center brand name and business model, the franchisor can expand without physically having to put the work in to open new locations.

The franchisee pays an initial “buy-in” fee, also known as a franchise fee. These fees grant the initial permission that gives the franchisee the right to use the name of the addiction treatment facility, logos, and business model. In addition, the franchisor will also receive an agreed-upon percentage of the revenue for each new franchised location.

The advantage? Less overhead and guidelines and processes can be inherited from the franchisor, as well as brand awareness. 

Advantages for the Franchisee                                        

After considering the franchise fee and percentage due, you might wonder what the benefits are to the franchisee who opens an addiction treatment center under your brand. The answer is simple: Access to an already-proven name in the industry, and a turn-key business model with a documented track record for success.

Instead of the usual startup costs, like allocating larger amounts on an initial budget for your addiction treatment marketing, and waiting to turn a profit –essentially you can become profitable almost from the very start.  

Why Addiction Treatment Center Franchising Continues to Grow

Over the past several years, franchising addiction treatment business models have grown increasingly popular. Several key dynamics are behind the explosion in owners transitioning to a franchise business model, whether in terms of a for-profit facility or a non-profit rehab center.

In the section below, we examine the why behind this booming trend.

Additional Substance Abuse & Mental Illness

One of the simplest and most direct reasons behind the upward expansion is the sheer number of mental health issues that plague the general population.

Skyrocketing cases of disorders like chronic depression, bipolar disorder, and PTSD, combined with challenges that come with addiction. This includes withdrawal symptoms and other ailments that lend to the growing demand for recovery and treatment programs.

There is currently a high demand for establishing rehab centers that include medically assisted detox, as well as a rise in the need for mental health treatment facilities.

If your organization specializes in this, it’s an excellent feature to build your brand around, as it delivers high value for specialized clients seeking to remedy withdrawal symptoms.

Expanding Your Brand Reach

There’s no better way to expand your brand reach and tap into new geographic opportunities than franchising your treatment programs. You can be selective regarding what region or state without the hassle of starting from scratch. Normally expansion into a new region entails the following:     

• Researching the area to scout the ideal location.
• Plan new marketing campaigns and hire staff from scratch
• Complete the physical assembly of your facilities
• Obtain all of your permits and regulatory licenses
• Tap into more substantial funding sources                                                                                              

Identifying and Achieving New Goals

Each time you expand or add another location under your franchise umbrella, you’re presented with new opportunities to identify and achieve goals for your addiction recovery business.

Establishing a new franchise location is an ideal time to assess your business in all key performance areas, and make any changes required moving forward to stay on course to achieve the goals for your drug treatment center.

Your Brand Message to Potential Franchisees: Securing Partners for New Locations

So, what is the best way for you to establish new business support for your rehab or for your collection of addiction treatment facilities? Once you establish yourself as one of the more reputable facilities and rehab owners in the industry, you’ll find that prospective franchisees will recognize you as a formidable candidate.

Even still, it helps to establish a powerful message for potential franchisees and prove to them why partnering with your brand is the best opportunity for them as business owners.

As you’re beginning to form your plan to sell your organization, the following talking points can help you land prospective investors.

High Initial Investment Return

One of the most attractive features of becoming a part of a chain of rehab centers is the opportunity for a faster return on investment. This is a mutually beneficial dynamic, as both sides of the business arrangement cut a substantial amount of costs as opposed to taking on the project from a solo standpoint.

As we mentioned initially, our franchisee saves a massive amount on the initial cost of establishing a reputable brand. This includes significant marketing and promotion costs, in addition to the overall development of everything required to establish an identity.

Take Advantage of Expertise and Reputation

Looking back on when you opened your first addiction treatment center, how valuable would the guidance and expertise of an established brand in the rehab industry be? That’s exactly what you’re able to offer future franchisees.

Having a plethora of resources and direct support from an organization that’s achieved success from the same starting point is invaluable for newcomers to the recovery industry.

Focus on the fact that your franchisees have untapped access to every aspect of your organization, including customer service, finance, compliance, marketing, tech support, and human resources. Owning an addiction recovery center can be unpredictable, and the support you can provide will help them avoid potentially disastrous pitfalls and common challenges among new owners.

As you move forward with your plan for scaling and franchising, it’s important that you keep several important tips in mind. The next section provides vital closing advice for you to take with you moving forward.

Key Points to Remember as a New Franchisor

The following tips will help you enjoy a smoother scaling process and help you avoid some of the growing pains that come with scaling your company:         

Ensure You’re Financially Stable

Although you’ll be taking in revenue from franchise fees, it’s important that you’re stable financially and poised for growth. No matter how you decide to scale, there are always additional expenses involved. It’s vital that as the head of a franchise chain, you remain stable for all of the rehab centers looking to you for support.

Prospective owners will also want insight into financials, and while you don’t have to disclose every facet of your corporation, you should be able to maintain a certain degree of transparency without instilling negativity into potential partners.

Don’t Shy Away from Your Identity

The more growth you experience, the more challenging you’ll find keeping tabs on each individual franchise location. Without a proper oversight or quality control system in place, you run the risk of not only your business processes but also your brand itself.

Think about how it could damage your identity if just one franchise location had a low-quality rating and was known for over-medicating clients or mistreating individuals in your program.

The Importance of Reputation to the Alcohol and Drug Rehab Franchise Model

It can even be something less serious, like having a reputation for not having the cleanest rooms or facilities. Any deviation from your brand identity and approach to business can leave a detrimental blow to your organization. As you grow, you mustn’t allow your formula for success to change.

Always keep your finger on the pulse of how each location is performing. Appoint a quality control liaison to check on locations every so often. In addition, crafting the right launching program and training packet will help new locations’ adoption of your identity go much smoother.

Need Help Getting the Word Out?

Are you preparing to begin scaling your rehab business? Have you been finalizing your plans for your franchise program and moving closer to the point of going live? Ads Up Marketing can help you get the word out.

Our experienced staff will help you distribute the most impactful messaging to the target audience that needs to hear it during your marketing campaign. We offer full-service advertising and marketing services, including PPC, social media marketing, SEO, and other vital platforms for communication.

We’ll help you translate your brand messaging, maintaining a uniform voice across any channel you leverage. For more information, please reach out for a complimentary consultation today.